TURNAROUND PLANNING

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TURNAROUND PLANNING EXECUTION FORUM
CONSTRUCTION INDUSTRIES INSTITUTE of the GOLDEN
TRIANGLE BUSINESS ROUNDTABLE MAY 8, 2003
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AGENDA

• INTRODUCTION
• WALTER ALMON, DUPONT
• ANDY BULLOCK, HUNTSMAN
• THE FOUR HOUR HOUSE
• DISCUSSION/TEAM BUILDING
• SAFETY
• JOE SELF, HUNTSMAN

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AGENDACONTINUED

• WORKSCOPE DEVELOPMENT
• MIKE FORSE, PREMCOR
• PLANNING/SCHEDULING
• STEVE HENDERSON, ATOFINA
• BREAK!!
• MOBILIZATION ONBOARDING
• ANDY BRISENDINE, ECHO MAINT.

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AGENDACONTINUED

• WORK EXECUTION PERMITTING ISSUES
• BILL HARRINGTON, CONEX
• SKILLS ASSESSMENT
• WALTER ALMON, DUPONT
• CLOSING STATEMENTS
• WRAP-UP
• NOON LUNCH!

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PANELIST

• MARK BRITTAIN
• INTERNATIONAL MAINTENANCE CORPORATION
• 722-8031 x222

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TURNAROUND SAFETY

• JOE SELF
• HUNTSMAN
• 723-3979

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Items To Be Considered
Resources - People Planning Scheduling Safety
Contract Strategy
Information contained herein was taken from a
study conducted by the Construction Industry
Institute - 2002 Construction Project Improvement
Conference
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Resources - People
Prior To Shutdown, When Does The Hiring Of
Workers Begin?
Recordable Incident Rate Less Than 2 Weeks
Before 0.58 Two To Six Weeks Before 0.22
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Resources - People
Where Do Workers Come From?
Recordable Incident Rate Available Workers Not
Familiar With The Work 2.28 Transferred
Workers Familiar With The Work 0.47
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Planning Scheduling
Was Software Used To Schedule The Project?
Recordable Incident Rate No 2.92 Yes
0.72
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Planning Scheduling
What Unit Of Time Was Used On Project Schedule?
Recordable Incident Rate Days 1.51 Shifts
0.68 Hours 0.45
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People,Planning Scheduling
Combined Worker Familiarity Scheduling By The
Hour
Recordable Incident Rate Not Familiar, Not
Hours 1.75 Familiar Or Scheduled By
Hours 1.08 Familiar Scheduled By
Hours 0.28
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Planning Scheduling
Days Worked Each Week
Recordable Incident Rate 7 Days 0.96 6
Days 0.67
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Planning Scheduling
Typical Shutdown Duration
Recordable Incident Rate 2 To 8
Weeks 1.20 Less Than 2 Weeks 0.62
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Planning Scheduling
Combined Shutdown Duration Days Worked Each
Week
Recordable Incident Rate At Least 4 Weeks At 7
Days Per Week 1.34 Less Than 2 Weeks 6 Days
Per Week 0.38
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Planning Scheduling
Crew Size
Recordable Incident Rate Over 12
Workers 1.62 7 Or Less 0.55
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Safety Contract Strategy
Shutdowns, Turnarounds Outages With Safety
Incentive Contracts
Recordable Incident Rate No Contractual Safety
Incentive 1.73 Fee-Impacted Safety
Performance 0.71
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TURNAROUND SCOPE OF WORK DEVELOPMENT

• MIKE FORSE
• PREMCOR
• 985-1685

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• WORK SCOPE DEVELOPMENT IS ONE OF THE KEY ELEMENTS
  IN THE TURNAROUND PROCESS
• Cost
• Duration
• Execution/Contracting strategy
• Future Unit availability
• Turnaround frequency

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• WORK SCOPE DEVELOPMENT IS
• THE PROCESS
• Identifying mechanical jobs
• Process items
• Project work

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• REASONS TO EXCLUDE WORK ITEMS
• More effective and efficient to perform work
  outside of the turnaround
• Additional supervision and overhead cost

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• REQUIREMENTS OF A JOB REQUEST
• Have at least one sponsor
• Screened and challenged
• Support the business objective
• Approved by the unit turnaround team

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• PRIMARY SOURCES OF WORK
• Previous turnaround summary reports
• Work order backlogs
• Inspection Engineering
• Operations
• Regulatory inspections
• Process improvement projects
• Unit shutdown and startup preparation

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• MILESTONE CHART FOR SCOPE DEVELOPMENT
• Identify sources of information
• Date needed and why
• Establish and communicate a freeze date

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• ADDITIONAL WORK PROCEDURES
• Job cost / Manpower impact
• Job duration/Impact on schedule
• Job category-
• Management approval

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• MAJOR SCOPE CHANGES
• INCREASE COST
• Increase planning cost
• Engineering cost
• Material cost
• Manpower cost

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• THE WORK SCOPE HAS THE LARGEST IMPACT ON
  TURNAROUND
• Cost
• Unit down time
• Loss profit opportunity

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• MAJOR KEYS FOR A SUCCESSFUL TURNAROUND
• Good scope development
• Good extra work process
• Buy-in from all departments

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TURNAROUND PLANNING AND SCHEDULING

• STEVE HENDERSON
• ATOFINA
• 963-6888

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Turnaround Planning and Scheduling

• Long Range Planning
• Short Term Planning
• Planning and Scheduling during the Turnaround.
• Post Turnaround

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Long Range Planning

• Coordination with upstream and downstream
• Raw Materials Purchasing and Disposition
• Product Sales and Disposition
• Industry economics
• Set Turnaround Budget (Based on historical and
  known work)
• Integrate Capital Projects
• Develop Key Performance Indicators
• Contracting Strategies
• Develop Work Scope Criteria and Responsibilities

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Short Term Planning

• Risk rank Turnaround jobs
• Detailed work scopes and estimates
• Determine the length of the outage
• Detailed schedule including
• Operations turnover of equipment
• Pre/Post Turnaround
• Turnaround Execution
• Detailed field logistics (Where to put trailers,
  laydown areas, etc.)
• Organization structure for Turnaround execution

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Planning and Scheduling during the Turnaround

• Planning
• Track and forecast cost
• Provide field support for job scope, contract
  issues and extras
• Scheduling
• Track Critical Path
• Track status of equipment
• Project completion date

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Post Turnaround Planning

• Modify tracking steps based on actual
  information
• Review methodology used to determine if the work
  could have been done more efficiently
• Check logistics plans and other peripheral
  components for needed modifications
• Hold critique meeting with all areas involved to
  determine areas for improvement

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TURNAROUND MOBILIZATION ONBOARDING

• ANDY BRISENDINE
• ECHO MAINTENANCE
• 724-1512

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Turnaround Mobilization

• Client
• Award Contract

• Contractor
• Several Weeks In Advance

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Safety

• Clients Safety Procedure

• Contractor To Have Enough Time To Know And
  Understand

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Permitting Procedures

• Clients Operations

• Contractor To Interface With Operations

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Scope

• Client To Have Definitive Scope

• Contractors Supervision To Be Onboard In Advance

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ISTC

• Clients Scan System

• Contractor To Be Able To Apply For Scan Cards In
  Advance

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Background Check

• Clients Position

• Contractors Position

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Pre-Turnaround

• Client

• Contractor To Perform All Of The Work

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Job Site

• Client To Establish

• Contractors View

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TURNAROUND WORK EXECUTION PERMITTING ISSUES
BILL HARRINGTONCONEX866-9888 X102
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EFFECTIVE STAFFING
1. Setting Contractor Milestones 2. Setting
Inspection Milestones 3. Critical Path
Management Productivity
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PRE-TURNAROUND PREPARATION
1. Team to Learn Scope Early 2.
Verification of Onsite Materials 3.
Identification of Potential Conflicts 4.
Review of Rigging Plans and Safety Procedures
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PERMITTING
Assuring Compliance
1. Supervision to Review Written Policy 2.
Pre-Turnaround Permit Meeting with
Supervision 3. Pre-Job Walkthrough (
Foreman Permit Issuer) 4. Mutual
Understanding
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SKILLS ASSESSMENT
WALTER ALMONDUPONT727-9129
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SKILL ASSESSMENTSBORN OF NECESSITY

• BEFORE OSHA 29 CFR 1910.119
• MANY INCIDENTS ALONG GULF COAST
• - PHILLIPS, ARCO, ARCADIA, CONOCO, CITGO

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OSHA REGULATIONSBORN OF NECESSITY

• PER OSHA 29 CFR 1910.119(h)(3)(i)
• CONTRACTOR EMPLOYER RESPONSIBILITIES
• THE CONTRACT EMPLOYER SHALL ASSURE THAT EACH
  CONTRACT EMPLOYEE IS TRAINED IN THE WORK
  PRACTICES NECESSARY TO SAFELY PERFORM HIS/HER
  JOB.

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OSHA REGULATIONSBORN OF NECESSITYCONTINUED

• PER OSHA 29 CFR 1910.119(h)(2)(v)
• EMPLOYER RESPONSIBILITIES
• THE EMPLOYER SHALL PERIODICALLY EVALUATE THE
  PERFORMANCE OF CONTRACT EMPLOYERS IN FULFILLING
  THEIR OBLIGATIONS AS SPECIFIED IN PARAGRAPH (h)
  (3) OF THIS SECTION.

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OBJECTIVE

• ENSURE THAT CRAFTSPERSONS ARE SKILLED IN THIS
  REGION
• MEET PROCESS SAFETY MANAGEMENT
• PER OSHA 1910.119

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OBJECTIVE- CONTINUED

• SYSTEM NEEDS TO BE COMMON
• OWNERS
• CONTRACTORS
• CRAFTSPERSONS

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COMMON METHOD FOR CRAFT SKILL ASSESSMENT

• IMPLEMENT A STANDARD SKILL ASSESSMENT PROGRAM
• USE NATIONAL CENTER FOR CONSTRUCTION EDUCATION
  RESEARCH (NCCER) ASSESSMENTS

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COMMON METHOD FOR CRAFT SKILL ASSESSMENTCONTINUED

• RECIPROCITY
• CONTRACTORS
• DIFFERENT GEOGRAPHICAL REGIONS

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KEY SUCCESS FACTORS

• GTBR/CII PLAN AGREED TO BY
• CONTRACTORS
• PLANT MANAGERS OF OWNERS
• AUGUST 2002
• MANDATE USE OF NCCER SKILL ASSESSMENTS

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COMMON REQUIREMENTS - DOCUMENTATION!!

• UNION
• DEPT OF LABOR PROGRAMS
• MERIT SHOP
• NCCER
• SPECIALTY
• COMPANY OR INDUSTRY PROGRAMS

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IMPLEMENTATION TIMELINE - 2003

• 1Q03 - IMPLEMENT
• CONTRACTORS
• OWNERS
• ALL CORE CRAFTSPEOPLE SKILL ASSESSED - 1 APRIL
  2003
• WRITTEN
• HANDS-ON BY CONTRACTOR
• DOCUMENTED

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IMPLEMENTATION TIMELINE - 2004

• BY JANUARY 2004
• ALL CRAFTSMAN SKILL ASSESSED
• WRITTEN
• HANDS-ON BY CONTRACTOR
• DOCUMENTED

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SUMMARY

• Q A SUMMARY
• EMAILED LATER
• CRITIQUE FORM
• FILL OUT
• ADDITIONAL COMMENTS
• RETURN BEFORE LEAVING!

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PHASE II

• SAFETY
• ENGINEERING CHG/SCOPE CREEP
• CONTRACTING STRATEGIES
• COST CONTROL
• DOCUMENT CONTROL
• OTHER TOPICS
• FALL 2003